14. Statement of Cash FlowsIndirect Method

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

	Dec. 31, 20Y2			Dec. 31, 20Y1
Assets
Cash	$ 532,890			$ 572,300
Accounts receivable (net)	484,930			442,300
Inventories	735,390			676,770
Prepaid expenses	17,050			20,250
Land	183,310			277,100
Buildings	847,300			522,230
Accumulated depreciation-buildings	(239,800)			(223,810)
Equipment	298,420			263,780
Accumulated depreciation-equipment	(82,070)			(92,190)
Total assets	$2,777,420			$2,458,730
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 527,710			$ 556,870
Bonds payable	155,540			0
Common stock, $20 par	184,000			68,000
Paid-in capital: Excess of issue price over par-common stock	440,000			324,000
Retained earnings	1,470,170			1,509,860
Total liabilities and stockholders equity	$2,777,420			$2,458,730

The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows:

ACCOUNT Land				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			277,100
Apr. 20	Realized $87,200 cash from sale		93,790	183,310

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			522,230
Apr. 20	Acquired for cash	325,070		847,300

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				223,810
Dec. 31	Depreciation for year		15,990		239,800

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			263,780
Jan. 26	Discarded, no salvage		29,000	234,780
Aug. 11	Purchased for cash	63,640		298,420

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				92,190
Jan. 26	Equipment discarded	29,000			63,190
Dec. 31	Depreciation for year		18,880		82,070

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		155,540		155,540

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				68,000
Dec. 7	Issued 5,800 shares of common stock for $40 per share		116,000		184,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				324,000
Dec. 7	Issued 5,800 shares of common stock for $40 per share		116,000		440,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,509,860
Dec. 31	Net loss	19,110			1,490,750
Dec. 31	Cash dividends	20,580			1,470,170

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Whitman Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
Net loss	$
Adjustments to reconcile net loss to net cash flow from operating activities:
Depreciation
Loss on sale of land
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Net cash flow used for operating activities		$
Cash flows from (used for) investing activities:
Cash from land sold	$
Cash used for acquisition of building
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from issuance of bonds payable	$
Cash from issuance of common stock
Cash used for dividends
Net cash flow from financing activities
Decrease in cash		$
Cash at the beginning of the year
Cash at the end of the year		$